Iridium Communications (IRDM) Tops Q1 EPS by 1c; Provides FY21 Revenue Growth Outlook

Iridium Communications (NASDAQ: IRDM) reported Q1 EPS of ($0.04), $0.01 better than the analyst estimate of ($0.05). Revenue for the quarter came in at $146.5 million versus the consensus estimate of $146.48 million.

"Iridium delivered first quarter results in line with our forecast. While total revenue increased, it's hard to compare this quarter's performance to the pre-pandemic period a year earlier. Subscribers grew at a double-digit pace, led by ongoing demand for consumer-oriented IoT devices, and Iridium's commercial IoT subscribers eclipsed one million users on our network this quarter," said Matt Desch, CEO, Iridium. Desch added, "We feel very good about Iridium's ability to accelerate service revenue growth over the balance of the year based upon the positive feedback and activity we are seeing with our business partners."

Commenting on the Company's share repurchase program, Desch said, "Iridium retired 1.6 million shares of common stock during the quarter under its recently authorized share repurchase program. The open-market activity reflects our confidence in Iridium's business prospects and our outlook for strong revenue growth into the future."

2021 Outlook

The Company reiterated its full-year 2021 outlook and other elements of long-term guidance:

• Total service revenue growth of approximately 3% for full-year 2021. Total service revenue for 2020 was $463.1 million.
• Full-year 2021 OEBITDA between $365 million and $375 million. OEBITDA for 2020 was $355.6 million.
• Negligible cash taxes in 2021. Cash taxes are expected to be negligible through approximately 2023.
• Net leverage of below 3.5 times OEBITDA at the end of 2022, assuming $300.0 million in share repurchases. Net leverage was 3.9 times OEBITDA at December 31, 2020.

For earnings history and earnings-related data on Iridium Communications (IRDM) click here.

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